The Governor's Office of Economic Development board on Friday approved a tax rebate for an unidentified financial services company to relocate some of its operations to Utah.

The board approved a rebate of up to $990,000 — $4,000 per employee for 195 technology jobs and $2,000 per employee for 105 financial operations jobs — paying at least 125 percent of the county median wage.

GOED board member Mark Howell said the company, which "does have name recognition" in the industry, is headquartered in California, and the Utah operations would not be a headquarters. A specific location for the company's Utah tech center was not disclosed, but Howell said it likely would be located along the Wasatch Front.

No time frame was given for the company's entree into Utah, assuming a deal is finalized, Howell said.

The most recent incentive announcement dovetailed into a larger discussion Friday about the state and effectiveness of business recruitment and the workings of a newly enacted law, HB11, which lets the state provide rebates of incremental tax increases resulting from business expansion and relocation.

Prior to HB11, which was passed by the 2004 Utah Legislature, the state could provide tax rebates for relocations and expansions at certain aerospace and aviation zones. Under that program, Utah provided a $17.7 million incentive over 15 years for Adam Aircraft for 675 employees and an $18.9 million incentive over 20 years for Williams International for 494 employees. The Adam Aircraft deal is expected to generate $93.6 million in new state revenue, while Williams' is expected to add $63 million, according to GOED.

Since HB11 became effective, information supplied this week by GOED to the Legislature showed that the department has provided incentives to seven companies totaling more than $8.1 million. They are expected to create 3,449 jobs, of which 2,315 are expected to be above the county median wage.

Martin Frey, managing director of economic development for the Governor's Office of Economic Development, told GOED board members Friday that HB11 "has truly been the best (economic development) tool in the toolbox at the moment."

But, as the meeting progressed, discussion arose indicating that some "tweaking" may need to be done in the upcoming legislative session.

Committee chairman Dell Loy Hansen asked Frey if there were plans to push legislation allowing the state to offer "up-front" incentive money to companies as part of its recruitment arsenal.

Particularly when wooing businesses about relocating their headquarters — which Frey said was one of the state's top goals — Hansen said it would be valuable to have that incentive arrow in the quiver.

"Headquarters have always been front-dollar incented," he said, adding that "we probably ought to look at changing the legislation" to permit some integration of up-front and post-performance incentives.

Board member Jerry Oldroyd suggested the front-dollar incentives shouldn't necessarily be limited to corporate headquarters, but that the board should have discretion to consider a broader array of candidates.

Frey said he would add the board's suggestion to the mix of considered priorities to submit to the Legislature. The priorities are expected to be submitted by the next legislative interim meeting day, scheduled for Nov. 9.

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